Finance Minister Arun Jaitley on Thursday addressed rising concerns over rising prices of global crude oil and continued depreciation of the rupee, which is now trading beyond the Rs 73-mark against the US dollar. In what seems to be a major relief, FM Jaitley announced that the centre has approved a cut of Rs 1.50 on excise duty for crude oil and an additional Re 1 will be absorbed by OMCs with immediate effect.

In addition, Jaitley said he would write to states to absorb an equivalent amount i.e. Rs 2.50 VAT to reduce the pressure on citizens. It may be noted that some states have already lowered the VAT to control the rising oil prices. If the states agree to deduct Rs 2.50/litre, then a Rs 5 relief on fuel prices can be expected in every state.